1. Suppose in the country A, the velocity of money in the country A is always stable. Answer the following questions: a. What is the quantity equation? (Please indicate and explain each variable) (2%) b. Suppose the price level in the period t-1 is Pt-1, and the price level in the period t is Pt in the country A. Please use Pt and Pt-1 to represent the inflation rate during the period t-1 and the period t in the country A. (2%) c. Suppose in the country A, the money supply was $2 million and real GDP was $4 million in 2005. In 2006, the money supply increased by 10 percent, real GDP increased by 5 percent and nominal GDP equaled $8.8 million. How much was the inflation rate between 2005 and 2006 in the country A? (Please use the percentage to represent your answer, and calculate to the second digit below, e.g. 0.456—0.46) (6%)

Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have been seen in most public firms. While many firms indicated that adoption of the new revenue recognition principle had no effect upon the timing of their revenue recognition, some firms indicated the new principle had significant effects upon their statements. For the firms where the new principle affected the timing of revenue, did the new revenue recognition principle speed or slow revenue recognition. Explain.

Scores in the first and final rounds for a sample of 20 golfers who competed in tournaments are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

Suppose you would like to determine if the mean score for the first round of an event is significantly different than the mean score for the final round. Does the pressure of playing in the final round cause scores to go up? Or does the increased player concentration cause scores to come down?

a. Use a = .10 to test for a statistically significantly difference between the population means for first- and final-round scores. What is the p-value?

p-value is .8904 (to 4 decimals)

What is your conclusion?

There is no significant difference between the mean scores for the first and final rounds.

b. What is the point estimate of the difference between the two population means?

.20 (to 2 decimals)

For which round is the population mean score lower?

Final round

c. What is the margin of error for a 90% confidence interval estimate for the difference between the population means?

?????? (to two decimals)

Could this confidence interval have been used to test the hypothesis in part (a)?

Yes

Explain.

Use the point of the difference between the two population means and add and subtract this margin of error. If zero is in the interval the difference is not statistically significant. If zero is not in the interval the difference is statistically significant.

Part 2: t-Procedures

In this part, we will use t-procedures. t-procedures are both confidence intervals and hypothesis tests that

use a t distribution. They are called t-procedures because they rely on a t-test statistic and/or a t-critical

value, so we only need to know the results of a sample in order to perform these procedures for a population

mean.

In Part 2, you will use the data file TempSample00-18.

(THIS IS THE DATA)

YEAR,Month,High Temperature

2000,Jan,45

2000,Jan,48

2001,Jan,49

2003,Jan,62

2003,Jan,53

2004,Jan,42

2004,Jan,47

2005,Jan,40

2005,Jan,47

2006,Jan,48

2006,Jan,47

2007,Jan,51

2007,Jan,34

2007,Jan,47

2009,Jan,50

2011,Jan,35

2012,Jan,44

2013,Jan,38

2013,Jan,53

2013,Jan,42

2014,Jan,58

2014,Jan,47

2014,Jan,44

2015,Jan,52

2016,Jan,44

2017,Jan,49

2018,Jan,54

2000,Feb,48

2001,Feb,47

2004,Feb,47

2007,Feb,51

2008,Feb,51

2008,Feb,55

2011,Feb,45

2014,Feb,37

2014,Feb,54

2014,Feb,58

2015,Feb,54

2017,Feb,52

2017,Feb,44

2017,Feb,45

This includes an SRS of daily temperature highs from January and February from the years 2000-2018

(i.e. "recent" highs). The distribution of "recent" daily high temperatures is approximately Normal.

2.1 Getting Started

2.1.1 Understanding the Set-Up

1) Describe the intended population?

2) Describe the sample?

3) Describe the variable of interest?

4) Describe the parameter of interest (in context)?

5) Describe the statistic of interest (in context)? Give a numerical value along with your description.

Round to two decimal places.

2.1.2 Checking Conditions

1) Check that the conditions for using t-procedures are satisfied. If they are not, discuss whether or not it is reasonable to use t-procedures.

2.2 Confidence Intervals

2.2.1 Motivating Question: Confidence Intervals

In 2.2, we will try to answer the question:

What is the average daily temperature high in Portland, OR for the

months of January and February during 2000-2018?

2.2.2 Confidence Interval

1) What degrees of freedom are needed?

2) What critical value is used to compute a 95% confidence interval?

3) Give the 95% confidence interval. Round to two decimal places.

4) Interpret your 95% confidence interval.

2.2.3 Wrap Up

1) Answer the motivating question in 2.2.1.

2.3 Hypothesis Tests (Tests of Significance)

2.3.1 Motivating Question: Hypothesis Tests

In 2.3, we will try to answer the question:

Is there evidence to suggest that the average daily temperature high in Portland,

OR for the months of January and February during 2000-2018 is different than

the historical average of 48.35◦F?

2.3.2 Hypothesis Test

1) Perform a hypothesis test for α = .01. Be sure to interpret your p-value in context.

2.3.3 Wrap Up

1) Answer the the motivating question in 2.3.1.

2.4 Final Remarks

1) Based on the data found in Part 2, what would you say about the daily high temperature for "recent"

years compared to "historical" years?

Chapter 7 in Horngren's cost accounting 16th edition textbook In summarizing its painstaking analysis of revenue and direct cost variances, the textbook refers to three levels of analysis. What specifics are revealed with regard to the difference between a master budget and actual results at each level?

Please use the textbook only.

3.

(5.15) Manatees are large, gentle, slow-moving creatures found along the coast of Florida. Many manatees are injured or killed by boats. below contains data on the number of boats registered in Florida (in thousands) and the number of manatees killed by boats for the years between 1977 and 2013. (data are distorted):

(a) Find the correlation rr (±±0.001)

rr =

(b) Find the equation of the least-squares line (±±0.001) for predicting manatees killed from thousands of boats registered.

yˆy^ = +xx

(c) What would you predict (±±0.1) number of manatees killed by boats to be if there are 900,000 boats registered?

(d) Predict (±±0.1) manatee deaths if there were no boats registered in Florida.

John from One Source Credit is trying to decide how many machines to buy. The processing time is 7.5 minutes per customer. One machine will have total fixed costs of $5,300 per day, two machines will have total fixed costs of $9,800 per day. Variable costs are $40 per customer, revenue is $80 per customer.

1. Determine the break-even point for one machine. a. 89 Customers per Day b. 133 Customers per Day c. 128 Customers per Day

2. Determine the break-even point for two machines. a. 223 Customers per Day b. 89 Customers per Day c. 245 Customers per day

3. If estimated demand is 260 customers per day and he wants a capacity cushion of 10%, how many machines would John need? Assume 12 hours per day operating time. a. One Machine b. Two Machines c. Three Machines

4. Lucy is analyzing her cookie production line. She knows that her Maximum Capacity is 140,000 cookies per day, and her Utilization Rate is 71%.. What is the Average Output of the production line? a. 197,183 b. 94,900 c. 99,400

5. If she wants to increase her effective capacity, she should: a. Have her employees take longer coffee breaks. b. Purchase more specialized equipment if there is cost justification to do so. c. Lobby for increased government regulation

When trying to assess differences in her customers, Claire – the owner of Claire’s Rose Boutique – noticed a difference in the typical demand of her female versus her male customers. In particular, she found her female customers to be more price sensitive in general. After conducting some sales analysis, she determined that her female customers have the following demand curve for roses: Q^F = 27 – 2.00 × P. Here, Q^F is the quantity of roses demanded by a female customer, and P is the price charged per rose. She determined that her male customers have the following demand curve for roses: Q^M = 30 – 1.00 × P. Here, Q^M is the quantity of roses demanded by a male customer. If two unaffiliated customers walk into her boutique, one male and one female, determine the demand curve for these two customers combined (i.e., what is their aggregate demand?). (Note: Q^T represents total, or aggregate, demand. Solve for the demand curve for prices less than $12.)

Q^T =________ - P_________

The marks on a statistics midterm test are normally distributed with a mean of 75 and a standard deviation of 6. What is the probability that a sample of 50 exams has a sample mean between 74 and 75?

a. 0.3810

b. 0.1210

c. 0.4641

d. 0.3790

e. 0.1190